Barclays, Deutsche Bank to Cut Pay Up to 20 Pct — Sources

Barclays and
Deutsche Bank will take a knife to bonuses for
investment bankers in the coming weeks as they seek to tackle
high costs, people familiar with the matter said.

FRANKFURT/NEW YORK, Jan 14 Barclays and
Deutsche Bank will take a knife to bonuses for
investment bankers in the coming weeks as they seek to tackle
high costs, people familiar with the matter said.

Britain's Barclays is finalising bonuses for last year and
overall 2012 compensation for investment bankers will fall by
between 10 percent and 20 percent on average, two sources said.

New Barclays CEO Antony Jenkins is revamping the bank and
has pledged to cut pay to lift returns for investors.

Deutsche Bank's investment bankers will see bonuses for 2012
fall by 15-20 percent, two sources said.

The reduction follows a year of restructuring at Germany's
flagship bank and pressure from regulators to clamp down on
short-term rewards.

Barclays and Deutsche Bank declined to comment.

Banks around the world are taking a harder line on pay and
are axing jobs as they try to get to grips with high costs as
tougher rules have made them less profitable than in the past.

Bonuses across the industry for 2012 could be down by as
much as 30 percent compared with 2011 levels, senior bankers
have estimated.

The structure of awards is also changing as regulators press
banks to clamp down on short-term rewards that can encourage
risk taking.

Credit Suisse is also to cut its bonus pool for
2012 by one fifth, the fourth year in a row the Swiss bank has
slashed payouts, a newspaper reported on Sunday.

Executives have put their staff on alert for lower pay for
some time.

Deutsche Bank co-Chief Executive Anshu Jain, who previously
headed its investment bank, said in September the payout ratio -
the proportion of net revenues set aside for banker pay - would
come down.

Barclays' Jenkins aims to cut compensation in the investment
bank to 39 percent of its income for 2012, one of the sources
said, down from 47 percent in 2011.

"We are on a path to continue to drive this
(compensation-to-income) ratio down, but always with an eye to
being competitive. We believe that we are in the top quartile
with this ratio, but we expect to continue to reduce it over
time," Jenkins told analysts in October.